Primary
problems when submitting signed Statement of Facts and avoiding
them:

First, business owners forget to sign the "Signed Statement of Personal
Property". An unsigned statement must be returned to the business owner for
signature. The account is treated as one where the statement has not been
returned and is subject to the same penalties and interest. Avoid this situation
by remembering to sign the Statement.

When buying
a business, do I use the acquisition cost of the original owner or
does my purchase create a new acquisition cost?

All equipment or fixtures used in the operation of a business are taxable
under Utah law. All of it must be reported whether it was acquired before or after
the startup of the business. Additionally, equipment that the owner requires an
employee to provide needs to be reported by the business owner or by the
employee.

Does equipment purchased prior to the
start of business and/or equipment from home I owned or received as
a gift need to be listed?

All equipment or fixtures used in the operation of a business are taxable
under Utah law. All of it must be reported whether it was acquired before or after
the startup of the business. Additionally, equipment that the owner requires an
employee to provide needs to be reported by the business owner or by the
employee.

How does Tax Law distinguish
between a True Lease and a Lease-purchase agreement?

If the agreement is a true lease and the equipment is truly owned by the
leasing company, the leasing company is responsible to report the equipment and
pay the taxes on it. The lessee reports the same equipment on schedule "D" of
the Signed Statement of Personal Property for information purposes only but does
not pay the tax.

If the agreement is a financial arrangement for the purchase of the
equipment, the Signed Statement of Personal Property should be filed and the tax
paid by the lessee. If you are leasing equipment and have questions about the
terms of your lease, contact your leaser to find out if the leasing company is
reporting and paying the taxes on the equipment.